US rocket company Astra Space seeks to raise $250 million in comeback bid

WASHINGTON, Aug 14 (Reuters) - Astra Space, a U.S. rocket company, is pursuing a $250 million funding round valued at $1 billion to revive its fortunes after a period of financial difficulties, CEO Chris Kemp said in an interview. The California-based firm has been seeking investors in recent months, highlighting new growth opportunities and financing strategies to bolster its mobile-launch rocket program and spacecraft propulsion business, with the aim of becoming a broader space platform company, according to an Astra fundraising adviser's email obtained by Reuters.

Once valued at over $2 billion when it went public in 2021, Astra was taken private in 2024 for $11.25 million following a series of rocket launch failures. The latest fundraising effort marks the company's first since a $80 million raise last year, which was utilized to cover legal expenses, settle shareholder lawsuits, and refinance the business following its troubled rocket program that led it to go private.

Unlike many industry players focused on developing reusable rockets like SpaceX's Falcon 9 and Rocket Lab's upcoming Neutron, Astra is focusing on low-cost, expendable launch vehicles. The company aims to provide militaries with the capability to rapidly launch satellites from various locations, making space assets less susceptible to attack by adversaries.

CEO Chris Kemp unveiled plans to scrap the company's original rocket after just two successful launches out of six attempts and is now banking on Rocket 4, a larger expendable vehicle scheduled for launch in 2027. Astra's satellite propulsion business has also been growing, having sold hundreds of thrusters, while Kemp emphasized Rocket 4's projected $5 million launch price as significantly more affordable than competing options.